-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H2UtTFbi21VPC8zdIqMcK0u/mNPKx7d2fO2XYf7ma7IXGLITZ545isFTM4YaIki4 E9v3TSzJoxX0IN7WEdngOA== /in/edgar/work/0001095811-00-004911/0001095811-00-004911.txt : 20001121 0001095811-00-004911.hdr.sgml : 20001121 ACCESSION NUMBER: 0001095811-00-004911 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS INC CENTRAL INDEX KEY: 0000354813 STANDARD INDUSTRIAL CLASSIFICATION: [3578 ] IRS NUMBER: 953276269 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-10294 FILM NUMBER: 773875 BUSINESS ADDRESS: STREET 1: 2131 FARADAY AVE CITY: CARLSBAD STATE: CA ZIP: 92008-7297 BUSINESS PHONE: 6199314000 MAIL ADDRESS: STREET 1: 2131 FARADAY AVE CITY: CARLSBAD STATE: CA ZIP: 92008 FORMER COMPANY: FORMER CONFORMED NAME: INTERNATIONAL TOTALIZATOR SYSTEMS INC DATE OF NAME CHANGE: 19920703 10QSB 1 a67193e10qsb.txt FORM 10-QSB PERIOD ENDED SEPTEMBER 30, 2000 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-10294 INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC. (Exact Name of Company as specified in its charter) CALIFORNIA 95-3276269 (State or other jurisdiction of (I.R.S. Employer Identification No.) Incorporation or Organization)
2131 FARADAY AVENUE, CARLSBAD, CALIFORNIA 92008-7297 (Address of Principal Executive Offices) (Zip Code) (760) 931-4000 (Company's Telephone Number, Including Area Code) Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] Indicate the number of shares outstanding of each of the Issuer's classes of common stock, as of the latest practicable date. As of November 14, 2000, 12,943,000 shares of common stock were outstanding. 2 INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC. Index
PART I FINANCIAL INFORMATION PAGE ---- Item 1. Financial Statements Consolidated Balance Sheet (Unaudited) 3 Consolidated Statements of Operations (Unaudited) 4 Consolidated Statements of Cash Flows (Unaudited) 5 Notes to Consolidated Financial Statements (Unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 PART II OTHER INFORMATION Item 1. Legal Proceedings 14 Item 4. Submission of Matters to a Vote of Security Holders 14 Signatures 15 Exhibits
2 3 INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC. PART I FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET (Unaudited)
SEPTEMBER 30, ($ in thousands, except share amounts) 2000 -------- ASSETS Current assets: Cash and cash equivalents $ 3,121 Accounts receivable, net 2,948 Costs and estimated earnings in excess of billings 54 on uncompleted contracts Inventories 426 Other current assets 676 -------- 7,225 Equipment, furniture and fixtures, net 511 -------- $ 7,736 ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,372 Billings in excess of costs and estimated earnings on uncompleted contracts 285 Employee compensation 464 Related party liability 392 Other current liabilities 1,162 -------- Total current liabilities 3,675 Shareholders' equity: Common shares, no par value, 50,000,000 shares authorized, 56,327 12,943,000 shares issued and outstanding Accumulated deficit (52,187) Cumulative other comprehensive income / (loss) (79) -------- Total Shareholders' equity 4,061 -------- $ 7,736 ========
See notes to consolidated financial statements. 3 4 INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
NINE MONTHS THREE MONTHS ENDED ENDED SEPTEMBER 30, SEPTEMBER 30, ----------------------- ----------------------- ($ in thousands, except per share amounts) 2000 1999 2000 1999 -------- -------- -------- -------- Revenues: Sales of products $ 2,958 $ 685 $ 18,401 $ 2,673 Services 989 556 2,202 1,713 -------- -------- -------- -------- 3,947 1,241 20,603 4,386 -------- -------- -------- -------- Cost of revenues: Cost of sales of products 2,102 620 13,515 2,182 Cost of services 290 427 1,364 1,175 -------- -------- -------- -------- 2,392 1,047 14,879 3,357 -------- -------- -------- -------- Gross profit 1,555 194 5,724 1,029 Engineering, research and development 387 324 741 951 Selling, general and administrative 2,476 1,060 4,792 3,198 -------- -------- -------- -------- Income / (loss) from operations (1,308) (1,190) 191 (3,120) Other income and (expense), net 49 46 414 294 -------- -------- -------- -------- $ (1,259) $ (1,144) $ 605 $ (2,826) ======== ======== ======== ======== Net income / (loss) Net income / (loss) per share: Basic $ (0.10) $ (0.19) $ .05 $ (0.47) ======== ======== ======== ======== Diluted $ (0.10) $ (0.19) $ .05 $ (0.47) ======== ======== ======== ======== Number of shares used in computation of net income / loss per share Basic 12,943 6,009 12,943 6,009 ======== ======== ======== ======== Diluted 12,943 6,009 13,022 6,009 ======== ======== ======== ========
See notes to consolidated financial statements. 4 5 INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
NINE MONTHS ENDED SEPTEMBER 30, --------------------- ($ in thousands) 2000 1999 ------- ------- Operating activities Net income / (loss) $ 605 $(2,826) Adjustments to reconcile net income / (loss) to net cash used for operating activities: Depreciation and amortization 161 184 Changes in assets and liabilities: Accounts receivable (2,532) 952 Costs and estimated earnings in excess of billings on uncompleted contracts (54) 45 Inventories (291) 626 Accounts payable 688 (38) Advance payments from customers -- 3,562 Billings in excess of costs and estimated earnings on uncompleted contacts (1,952) -- Employee compensation (157) (145) Other 279 (1,082) ------- ------- 1,278 Net cash used for operating activities (3,253) ------- ------- Investing activities Additions to equipment (409) (49) ------- ------- Net cash used for investing activities (409) (49) ------- ------- Effect of exchange rate changes on cash (18) 17 ------- ------- Increase (decrease) in cash and cash equivalents (3,680) 1,246 Cash and cash equivalents at beginning of period 6,801 2,270 ------- ------- Cash and cash equivalents at end of period $ 3,121 $ 3,516 ======= =======
See notes to consolidated financial statements. 5 6 INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ($ in thousands) 1. BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the interim periods shown in this report are not necessarily indicative of the results to be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements incorporated by reference in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1999. The Company's consolidated financial statements were prepared on a continuing operations basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION - The accompanying consolidating financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany accounts and transactions are eliminated. REVENUE RECOGNITION - The Company recognizes revenue on the basis of shipment of products, performance of services, and in certain instances on the percentage-of-completion method of accounting for long term contracts, or on the completed contract method of accounting for long term contracts when all criteria for recognizing revenue under the percentage-of-completion method of accounting cannot be met. USE OF ESTIMATES - The preparation of financial statements, in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. DEPRECIATION - Depreciation of equipment, furniture and fixtures is provided principally using the straight-line method over estimated useful lives of three - seven years. 6 7 WARRANTY RESERVES - Estimated expenses for warranty obligations are accrued as income is recognized on related contracts. The reserves are adjusted periodically to reflect actual experience. FOREIGN CURRENCY - The Company has contracts with certain customers that are denominated in foreign currencies, and related transaction gains and losses are recognized as a component of current operations. The consolidated accounts of the Company's Australian subsidiary and UK subsidiary have been translated from their functional currency, the Australian dollar and pound sterling, respectively. The effect of the exchange rate fluctuations between the U.S. dollar, the Australian dollar and the pound sterling are recorded as a component of comprehensive income. RESEARCH AND DEVELOPMENT - Engineering, research and development costs are expensed as incurred. Substantially all engineering, research and development expenses are related to new product development and designing significant improvements. CONCENTRATION OF CREDIT RISK - Accounts receivable and costs in excess of billings on uncompleted contracts are primarily related to contracts with a few major customers. These amounts are payable in accordance with the terms of individual contracts and generally collateral is not required. Estimated credit losses are provided for in the financial statements. The Company conducts business in the Asia/Pacific region. Certain Asian countries have experienced severe economic turmoil represented by depressed business conditions and volatility in local currencies. Any significant further decline in these economies and in the value of their currencies could have a material adverse effect on the Company. CASH AND CASH EQUIVALENTS - The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. RECENT ACCOUNTING PRONOUNCEMENTS - In December 1999, the Securities Exchange Commission ("SEC") staff released Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition," as amended by SAB No. 101A and SAB No. 101B, to provide guidance on the recognition, presentation and disclosure of revenue in financial statements. SAB No. 101 explains the SEC staff's general framework for revenue recognition, stating that certain criteria be met in order to recognize revenue. SAB No. 101 also addresses the question of gross vs. net revenue presentation and financial statement and Management's Discussion and Analysis disclosures related to revenue recognition. The Company has not yet adopted SAB No. 101 but does not anticipate that the adoption of this bulletin, at December 31, 2000, will result in a material effect on the financial statements. 7 8 3. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the nine months ended September 30, 2000 (in thousands, except per share amounts):
Nine Months Ended September 30, 2000 ------------- Numerator: Net Income $ 605 ------- Numerator for basic earnings per share -- income available to common stockholders $ 605 ======= Denominator: Denominator for basic earnings per share -- Weighted average shares 12,943 Effect of dilutive securities: Stock option plans 79 ------- Denominator for diluted earnings per share -- adjusted weighted average shares and assumed conversions 13,022 Basic earnings per share $ 0.05 ======= Diluted earnings per share $ 0.05 =======
For the three months ended September 30, 2000, net loss per share is computed using the weighted average number of common shares outstanding during the period. The weighted average number of shares outstanding for the three months ended September 30, 2000 was 12,943. For the three and nine months ended September 30, 1999, net loss per share is computed using the weighted average number of common shares outstanding during the period. The weighted average number of shares outstanding for the three and nine months ended September 30, 1999 was 6009. 4. INVENTORIES The inventories at September 30, 2000 are composed entirely of raw materials and work in process. 8 9 5. COMPREHENSIVE INCOME/LOSS The company accounts for comprehensive income in accordance with the Statement of Financial Accounting Standards ("FAS") No. 130, "Reporting Comprehensive Income." The components of comprehensive income / (loss) are as follows (in thousands):
Three Months Nine Months Ended Ended September 30, September 30, --------------------- --------------------- 2000 1999 2000 1999 ------- ------- ------- ------- Net income/ (loss) $(1,259) $(1,144) $ 605 $(2,826) Foreign currency translation adjustment (19) (6) (18) 17 ------- ------- ------- ------- Comprehensive income / (loss) $(1,278) $(1,150) $ 587 $(2,809) ------- ------- ------- -------
6. SIGNIFICANT CONTRACTS In September 1999, the Company announced the signing of two agreements with Global Technologies, Ltd. ("GTL") under which the Company supplied an on-line lottery system and was to provide facilities management services in the United Kingdom for a term of eight years. Under the terms of the purchase agreement, the Company provided a complete DataTrak on-line lottery system including central system hardware and software as well as 3,500 DATAMARK Xclaim terminals with a value of $12.3 million. Substantially all of the terminals were delivered in the first quarter of 2000. Approximately $2.9 million was still outstanding as Accounts Receivable as of September 30, 2000. Payments under the Facilities Management Agreement began in April 2000 and $1.3 million was received before GTL ceased operations in mid-October 2000 at which time the Company stopped accruing revenue on the service contract. As of September 30, 2000, approximately $0.9 million was outstanding under the Facilities Management Agreement. In October 2000, GTL paid $2.3 million of amounts owed to the Company. The remaining balance of $1.8 million remains outstanding under the two agreements. Management has determined that the remaining balance is uncollectable and recorded an additional reserve in the three-month period ended September 30, 2000 for the $1.7 million. The provision is included in selling, general and administrative expenses in the accompanying statements of operations. The Company is considering its legal options against GTL under the purchase agreement and the service agreement. 7. SUBSEQUENT EVENTS In July 2000, Company entered into a Security Agreement and a U.C.C. Financing Agreement with Anacomp, Inc. pursuant to which Company pledged its accounts receivables and other rights to receive contractual payments to secure amounts owed to Anacomp by reason of terminals manufactured and delivered to GTL for the U.K. Charitable Lottery. The final payment to Anacomp was made in early November, thereby terminating the Security and U.C.C. Financing Agreements. 9 10 In November 2000, the Company has entered into an agreement with the Singapore Turf Club for the Company to supply extensive software and terminal hardware in a pilot development contract with a value of $1.6 million. In November 2000, the Company agreed to supply Sports Toto Malaysia Sdn Bhd, a subsidiary of Berjaya Group Berhad, the owner of 70% of the Company's outstanding shares, an ILTS DataTrak on-line lottery system, an account betting system and approximately 1,000 terminals for a total purchase price in excess of $8.1 million. The Company will immediately receive a 25% down payment on the contract. 10 11 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations FORWARD LOOKING STATEMENTS The statements in this filing which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by forward-looking statements. These risks and uncertainties include dependence on business from foreign customers sometimes in politically unstable regions, political and governmental decisions as to the establishment of lotteries and other wagering industries in which the Company's products are marketed, fluctuations in quarter-by-quarter operating results and other factors described in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1999. SUMMARY OF SIGNIFICANT DEVELOPMENTS During the third quarter deliveries were completed for the supply of 815 lottery terminals to AB Trav och Galopp (ATG) of Sweden and deliveries are continuing on an additional 60 terminals to ATG and on the 140 lottery terminals to Leisure Management Berhad of Malaysia for contracts announced in August 1999 and May of 2000, respectively. These are expected to be completed by the end of the 4th quarter. In September 1999, the Company announced the signing of two agreements with Global Technologies, Ltd. ("GTL") under which the Company supplied an on-line lottery system and was to provide facilities management services in the United Kingdom for a term of eight years. Under the terms of the purchase agreement, the Company provided a complete DataTrak on-line lottery system including central system hardware and software as well as 3,500 DATAMARK Xclaim terminals with a value of $12.3 million. Substantially all of the terminals were delivered in the first quarter of 2000. Approximately $2.9 million was still outstanding as Accounts Receivable as of September 30, 2000. Payments under the Facilities Management Agreement began in April 2000 and $1.3 million was received before GTL ceased operations in mid-October 2000 at which time the Company stopped accruing revenue on the service contract. As of September 30, 2000, approximately $0.9 million was outstanding under the Facilities Management Agreement. In October 2000, GTL paid $2.3 million of amounts owed to the Company. The remaining balance of $1.8 million remains outstanding under the two agreements. Management has determined that the remaining balance is uncollectable and recorded an additional reserve in the three-month period ended September 30, 2000 for the $1.7 million. The provision is included in selling, general and administrative expenses in the accompanying statements of operations. The Company is considering its legal options against GTL under the purchase agreement and the service agreement. Historically, significant service revenue had been derived from a terminal maintenance agreement with an Australian lottery customer. In October 1998, the Australian Lottery customer awarded this contract to a competitor of the Company. This maintenance agreement expired on January 31, 2000 and the operations of the Australian subsidiary were significantly reduced. 11 12 RESULTS OF OPERATIONS Product sales in the third quarter of fiscal 2000 increased to $2.96 million from $.68 million in the third quarter of fiscal 1999. Substantially all of the increase was due to revenue recognized from the sale of terminals to ATG in 2000. Service revenues increased $433,000 to $989,000 compared to $556,000 in the third quarter of 1999. This increase resulted from revenues generated through the Company's UK subsidiary for facilities management to GTL. However, GTL defaulted under the Facilities Maintenance Agreement and in October 2000, the Company discontinued providing services to GTL under this agreement. Due to the uncertainty of collection of amounts due from GTL, the Company recorded a provision for uncollectable accounts receivable at September 30, 2000 for $912,000 related to the facilities management services. Gross profit on third quarter product sales was $.86 million or 29%, compared with a gross profit of $.06 million or 9% in 1999. This increase in gross profit results from increased contract revenue in the US. Over $2 million in contract revenue for the third quarter 2000 compared to less than $200,000 of contract revenue for the third quarter of 1999 provided sufficient support to cover unbillable operating costs. The gross profit percentage on third quarter service revenues was 71% in 2000 compared to a gross profit of 23% in 1999. The facilities management agreement from the UK subsidiary to GTL was responsible for the increased gross profit percentage in the third quarter 2000. In the third quarter 1999, the majority of service revenue came from the Australian subsidiary at a gross profit percentage under 20%. Engineering, research and development expenses in the third quarter of 2000 were $387,000 compared to $324,000 in the third quarter of 1999. Selling, general and administrative expenses for the third quarter of 2000 increased to $2.5 million over 1999 expenses of $1.1 million. The increase in SG&A expenses for the third quarter of 2000 results from $1.7 million in provisions for uncollectable accounts receivable related to GTL. Marketing Expenses were down $209,000 in third quarter 2000 compared with third quarter 1999 along with various other SG&A expenses. Other income and expense, net for 2000 and 1999 were consistent at $49,000 and $46,000, respectively. This amount primarily includes foreign exchange gain and loss and interest income. A provision for income taxes has not been recorded in the three and nine months ended September 30, 2000, given that the Company has sufficient available net operating loss carry forwards to offset any tax liabilities. LIQUIDITY AND CAPITAL RESOURCES At September 30, 2000, the Company had working capital of $3.6 million. During the quarter ended September 30, 2000, accounts receivable decreased $.90 million to $2.95 million. The additional provision for uncollectable accounts receivable for the quarter was $1.8 million offset by additional revenue. Cash decreased $1.6 million compared to June 30, 2000 due to delay in account receivable payments, payments to Anacomp for the manufacture of terminals for the GTL contract, and additional marketing expenses. The accounts payable balance decreased $562,000 in the quarter which is attributable to the payment of Anacomp, the outside terminal manufacturer used for the GTL contract. 12 13 During the nine months ended September 30, 2000, cash and cash equivalents decreased by $3.7 million by reason of payments made for the manufacture of terminals for the GTL contract. Accounts receivable for the nine-month period increased by over $2.5 million primarily because of the GTL contract and ATG sales. Accounts payable increased approximately $0.7 million for the period primarily because of invoices from Anacomp Inc. for contract manufacturing of the GTL terminals for ILTS. Payments to Anacomp were temporarily suspended due to delays in production by Anacomp and delays in cash receipts from GTL. The Company pledged certain of its accounts receivable balances to Anacomp as collateral (see also Note 6 to the accompanying financial statements). Revenues from profitable contracts to be delivered in 2000 and 2001 should enable the Company to continue its normal business operations into the future. As of September 30, 2000 there were no material commitments for capital expenditures. FOREIGN EXCHANGE FLUCTUATION The Company's reporting currency is the U.S. dollar. Historically, a majority of the Company's sales have been denominated in U.S. dollars, with the balance denominated in foreign currencies. These foreign currency sales have been effected principally by the Company's international subsidiaries. Changes from reporting period to reporting period in the exchange rates between various foreign currencies and the U.S. dollar have had, and will in the future continue to have, an impact on revenues and expenses reported by the Company, and such effect may be material in any individual reporting period. The company does not engage in any hedging activities. As the contracts are predominantly denominated in the functional currency of the subsidiary performing under the contract, the Company has historically incurred immaterial amounts of transaction gains or losses. 13 14 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS The Company is subject to legal proceedings and claims that arise in the normal course of business. While the outcome of these proceedings and claims cannot be predicted with certainty, Management does not believe that the outcome of any of these matters will have a material adverse effect on the Company's consolidated financial position or results of operations. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS On June 22, 2000, the Registrant held its 2000 Annual Meeting of Shareholders. At the Annual Meeting, the following persons were elected as directors of the Registrant: Chan Kien Sing, Frederick A. Brunn, Theodore A. Johnson, Alain K. Lee, M. Mark Michalko, Leonard G. Morrissey, Ng Foo Leong, Martin J. O'Meara, Jr., and Lord Michael G.R. Sandberg and the Company's Year 2000 Equity Participating Plan ("Plan") was approved by the Shareholders. The matters to be voted upon were conducted by the Inspector of Elections. The following are the results of the voting on these matters. All nominees received at least 98%, of the votes cast for Directors. Approval of the Plan received at least 96% of the votes cast. ITEM 6. (27) FINANCIAL DATA SCHEDULE 14 15 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. INTERNATIONAL LOTTERY & TOTALIZATOR SYSTEMS, INC. /s/ M. Mark Michalko - -------------------- M. Mark Michalko President and Acting Chief Financial Officer Date: November 14, 2000 15 EX-27 2 a67193ex27.txt FINANCIAL DATA SCHEDULE
5 1,000 9-MOS DEC-31-1999 SEP-30-2000 3,121 0 2,948 0 426 676 511 0 7,736 3,675 0 0 0 56,327 (52,187) 7,736 20,603 20,603 14,879 14,879 5,119 0 0 605 0 605 0 0 0 605 .05 .05
-----END PRIVACY-ENHANCED MESSAGE-----